2024 Year in Review: Land Use and Zoning Law in Philadelphia

This past year, the city of Philadelphia approved and implemented several impactful pieces of legislation affecting land use and zoning law. These changes impacted the process of developing real estate, managing rental properties, rental price control, landlord-tenant, homestead exemption, homelessness, property values, discrimination, changes in city administration rules and even the mark up of multiple zoning overlays, especially in center city where the new 76ers arena is proposed.

In this article, we highlight some of the most important changes to land use and zoning law in Philadelphia in the year 2024.

Bill No. 241062—Creation of Chinatown Overlay District

This late fall, city council introduced Bill No. 241062 Amending Section 14-500 of The Philadelphia Code, titled Overlay Zoning Districts, by amending Section 14-502, titled CTR/Center City Overlay District and 14-702, Floor Area, Height, and Dwelling Unit Density Bonuses, and creating Section 14-542, titled “/PCH, Philadelphia Chinatown Overlay District.”

This new bill amends certain height and setback regulations, use controls, sign controls, and parking and loading controls. Furthermore, this bill amends where kiosks and outdoor sales may take place and where outdoor audio may be played. The purpose of the majority of these amendments serve to preserve and protect the current character of Chinatown.

Furthermore, any new developments in the Chinatown Overlay District must comply with a new affordability standard. Development projects of 10 or more units must include on-site affordable dwelling units developed consistent with the requirements of the Moderate Income level bonus of the Mixed Income Housing Bonus, provided that no such bonuses shall be earned for the provision of such units. However, if the developer demonstrates that 51% of the units are affordable and executes and records a deed restriction to that point, they will be exempt from the aforementioned on-site affordability standard. The new regulation also stiffens the dimensional regulations for retail and commercial spaces within the Overlay district.

This bill is currently in committee.

Bill No. 241064—Amending the Philadelphia Code, Zoning and Planning on Electric Vehicles

This late fall, city council introduced Bill No. 241064, amending the Philadelphia Code by revising provisions for electric vehicle parking and electrical supply requirements and making technical changes.

This new bill introduces a designated parking space which is provided with at least a Level 2 installed electric vehicle supply equipment, regardless of whether motor vehicles in the space may be parked or kept for a charge, fee, or other consideration.

Furthermore, the bill discusses the required electrical parking spaces for both residential and commercial development projects. Any development project that contains residential use and is providing 10 to 20 or more parking spaces in connection with the development project would be required to provide electric vehicle parking spaces.

In addition, the law goes into the overall display of the charging station. The placement of any video or digital display with a screen area of less than one square foot is permitted on a primary structure, accessory structure, or piece of equipment and must be designed to be viewed only by an individual obtaining services or goods at that location. This includes digital or video screens on fuel pumps, car washes, electric vehicle supply equipment, and air filling stations.

This bill is currently in committee.

Bill No. 240971—Amending the Center City District Zoning Overlay District

Throughout the year, there have been many changes and modifications to zoning overlays throughout the city. However, the Center City District Zoning Overlay is one that stands out, especially in regards to the proposed new 10,000-plus arena in center city for the Philadelphia 76ers.

On Sept. 25, 2024, after months of discussion regarding the proposal, Mayor Cherelle Parker gave her full support behind the proposal. It is up to city council to give full approval of this proposal.

On Oct. 24, 2024, Councilmember Mark Squilla and Council President Kenyatta Johnson created Bill No. 240971. This bill will Amend Title 14 of the Philadelphia Code, titled Zoning and Planning, by amending certain definitions relating to signs, creating an “Arena Area” within the “/CTR, Center City Overlay District” overlay, and making related changes, including a master plan requirement and changes to accessory sign controls.

Bill No. 240971 is still in committee for debate and a vote.

Bill No. 240304—Amending Subcode ‘A’ of the Philadelphia Administrative Code

This past spring, city council introduced Bill No. 240304, which would amend Subcode “A” of The Philadelphia Administrative Code and Title 4 of the Philadelphia Building Construction and Occupancy Code to require proof of certain insurance certificates.

The bill states that no permit for new construction or demolition shall be issued to any applicant unless such applicant has agreed in writing to obtain and maintain in full force and effect, at the applicant’s expense, an insurance policy also naming the adjoining or adjacent property owners as an additional insured and submits such certificate of insurance to the department. The policy shall afford comprehensive general liability insurance in accordance with insurance limits based on license types as determined by the Department of Licenses and Inspections, including products and completed operations coverage and contractual liability insurance covering any indemnification and hold harmless obligations.

The holder of any permit authorizing any construction activity shall maintain a true copy of the developer or contractor’s certificate of insurance on the site of the operation open to public inspection upon request during the entire time that the construction permit or notice of permits issued by the Department is posted.

This bill remains in committee for a second hearing.

Bill No. 240697—Housing, Neighborhood Development, and the Homeless Committee Setting Affordable Housing Programs

This past fall, the city council introduced a bill relating to the Housing, Neighborhood Development, and the Homeless Committee. Bill No. 240697 requires the city of Philadelphia Housing Neighborhood Development and Homeless Committee to hold hearings on setting affordable housing program eligibility according to the metric of regional Area Median Income (AMI). The bill states that AMI fails to reflect the true state of housing affordability needs of Philadelphians, which leads to city housing programs not providing enough funding to those who need it most. The bill suggests the adoption of a more locally defined AMI that can be utilized to create and sustain genuinely affordable housing across the city of Philadelphia.

This new law will allow the committee to investigate the current AMI and the housing programs maximum eligibility criteria and adjust it accordingly to the average income of Philadelphians. Currently, maximum eligibility criteria are set at 60% ($68,640), 100% ($114,100), or even 120% ($137,280) of the regional AMI, while 30% of Philadelphia households earn less than $30,000 per year.

This new law focuses on creating a more localized AMI standard that would support the development of housing that is genuinely affordable to the city’s very low and low-income households, promoting long term stability and broader community resilience.

Most importantly, this law will help address the need for and increase the demand of affordable housing programs. Home values rose in Philadelphia by over 100% in the last 20 years, while incomes only rose by 9%.

Resolution. 240708—Extending the City’s Acceptance in Nunc Pro Tunc Applications

This past fall, the city council passed Resolution No. 240708 urging the Board of Revision of Taxes (BRT) to adopt a policy accepting all nunc pro tunc property assessment appeals filled for Tax Year 2025 by March 31, 2025, due to the delay in mailing of property reassessment notices until Aug. 7, 2024. In previous years, property owners received their new assessments in April and March.

This bill addresses the increase in property reassessments and how certain areas within the city saw a residential assessment increased by 50% (West Philadelphia and Kensington) compared to a citywide average of 11% since the last reassessments in 2022.

Since it is a citywide re-assessment year, the BRT received a higher-than-normal volume in BRT, especially since the re-assessments of property came out late. Under the bill, these late nunc pro tuncs would qualify as “a non-negligent happenstance.”

Bill No. 240492—Increasing the Homestead Exclusion

This past spring, the city council passed Bill No. 240492, which amended Section 19-1301.1 of the Philadelphia Code, titled “Homestead Exclusion,” which increased the amount of the homestead exclusion, under certain terms and conditions. This new law will increase the homestead exclusion from $80,000 (2024 tax year rate), to $100,000 (tax year 2025 and on). The homestead exclusion reduces the taxable portion of a property’s assessment. Now, under this new law, Philadelphia homeowners can reduce the taxable portion of their property assessment by an additional $20,000.

Bill No. 240656—Amending the Philadelphia Code of Common Procedures and Requirements

This past late fall, City Council passed Bill No. 240656, amending Section 14-303 of the Philadelphia Code, titled “Common Procedures and Requirements,” to clarify the provisions related to public hearings of the Zoning Board of Adjustment and make technical changes all under certain terms and conditions.

The new law reiterates that three members of the Zoning Board of Adjustment shall constitute a quorum for any public hearing required under the zoning code. A majority of the members of the Zoning Board of Adjustment shall constitute the quorum. No action shall be taken by the board unless at least three members of the board, present at the time of the vote, concur. Any person may appear in person or by an attorney and may be accompanied by family member or translator. Statements by a person’s attorney on his or her behalf shall be considered as testimony, except were agreed upon by the parties.

In closing, this year, city council has addressed multiple concerns in regarding the zoning and real estate laws in the city. These concerns focused on the zoning board, Office of Property Assessment, rent control, landlord-tenant eviction process, anti-discrimination practices, homestead exemption and changing zoning overlays. Majority of the bills and resolutions in regard to zoning and real-estate laws brought to the floor have passed throughout the year. Some continue to be held in session and will be voted on by the end of the year.

Alan Nochumson is a shareholder of Nochumson P.C., a legal services firm with a focus on real estate, land use and zoning, litigation, and business counseling for the people of Pennsylvania and New Jersey. Nochumson is a frequent author and lecturer on issues commonly confronting businesses, individuals and professionals. You can reach him at 215-600-2851 or alan.nochumson@nochumson.com.

Alex Goldberg is an associate attorney at the firm. You can reach him at 215-399-1346 or alex.goldberg@nochumson.com.